Slide 1: Celanese 4Q 2010 Earnings Conference Call / Webcast
Dave Weidman, Chairman and Chief Executive Officer Steven Sterin, Senior Vice President and Chief Financial Officer Celanese 4Q 2010 Earnings Conference Call / Webcast Tuesday, February 1, 2011 10:00 a.m. ET
Slide 2: Forward looking statements; Reconciliation and use of non-GAAP measures
Forward looking statements Reconciliation and use of non-GAAP measures to U.S. GAAP This presentation may contain "forward-looking statements," which include information concerning the company's plans, objectives, goals, strategies, future revenues or performance, capital expenditures, financing nee
Slide 3: Dave Weidman, Chairman and Chief Executive Officer
Dave Weidman Chairman and Chief Executive Officer
Slide 4: Celanese Corporation 4Q and full year 2010 highlights
Celanese Corporation 4Q and full year 2010 highlights in millions (except EPS) 4th Qtr 2010 4th Qtr 2009 FY 2010 FY 2009 Net Sales $1,507 $1,388 $5,918 $5,082 Proportional Net Sales from Affiliates $426 $419 $1,623 $1,374 Total: $1,933 $1,807 $7,541 $6,456 Operating Profit/(Loss) $138 $109 $501 $290
Slide 5: Increasingly advantaged portfolio drives 2011 earnings improvement
Represents ~ $0.60 per share in 2011 earnings improvement 2x to 3x GDP revenue growth Strong earnings conversion Robust technology-rich pipeline Continued earnings growth Closure of Spondon flake and tow Strong operating margins Growth in Asia Process innovation and productivity Sustained acid margi
Slide 6: Steven Sterin, Senior Vice President and Chief Financial Officer
Steven Sterin Senior Vice President and Chief Financial Officer
Slide 7: Advanced Engineered Materials
4th Quarter 2010: Strong volume growth and higher value-in-use pricing, offset by currency Operating EBITDA flat as improved revenue offset by raw materials, turnaround and timing of other costs Continued building inventory for European expansion Outlook: Seasonally strong demand and pricing environ
Slide 8: Consumer Specialties
4th Quarter 2010: Higher volume on increased global demand, primarily in acetate products Margin expansion driven by sustainable productivity initiatives that more than offset higher raw material and energy costs Outlook: Normal seasonality in first quarter Strong demand and expanded margins Year-ov
Slide 9: Industrial Specialties
4th Quarter 2010: Higher pricing and volume driven by strong demand and innovation, particularly in photovoltaic applications Emulsions business in Asia at full utilization ahead of VAE capacity expansion in Nanjing, China mid-2011 Outlook: Stronger seasonal demand driving volume growth Margin expan
Slide 10: Acetyl Intermediates
Acetyl Intermediates 4th Quarter 2010: Strong results driven by improved global demand and higher pricing, particularly in downstream derivatives China focus on end of year energy reduction affected competing technologies Improved pricing environment with higher raw materials Outlook: Expect modest
Slide 11: Affiliate performance: growth in emerging markets and structural raw material hedge
Provide growth in emerging markets and structural raw material hedge FY 2010 results Received $73 million of cash dividends from cost investments (Q2 2010) Equity affiliates contributed $168 million to earnings with an additional $148 million proportional EBITDA not included in Operating EBITDA Affi
Slide 12: Free cash flow FY 2010
Free cash flow FY 2010 Adjusted Free Cash Flow Adjusted Free Cash Flow Adjusted Free Cash Flow $ in millions FY 2010 FY 2009 Net cash provided by operating activities $452 $596 Adjustments to operating cash for discontinued operations $58 $2 Net cash provided by operating activities from continuing
Slide 13: 2011E Adjusted Free Cash Outflows and Available Cash
2011E Adjusted Free Cash Outflows (off EBITDA Base) 2011E Adjusted Free Cash Outflows (off EBITDA Base) Cash Taxes $75 - $100 Capital Expenditures $300 - $350 Reserve/Other $100 - $120 Net Interest $220 - $230 Pension $120 - $140 Working Capital $30 - $50 Adjusted Cash Outflows* $845 - $990 Dividend
Slide 14: Appendix Notes
Appendix Notes: References on the following slides to tables correspond to the tables included with Celanese press release dated February 1, 2011
Slide 15: Reg G: Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA
Reg G: Segment Data and Reconciliation of Operating Profit (Loss) to Operating EBITDA - Non-U.S. GAAP Measure (Table 1) - unaudited
Slide 16: Reg G: Reconciliation of consolidated Operating EBITDA to net earnings (loss)
Reg G: Reconciliation of consolidated Operating EBITDA to net earnings (loss) - Non-U.S. GAAP Measure (Table 1A) - unaudited
Slide 17: Reg G: Reconciliation of net debt
Reg G: Reconciliation of net debt (Table 5) - Non-U.S. GAAP Measure - unaudited
Slide 18: Reg G: Reconciliation of adjusted EPS
Reg G: Reconciliation of adjusted EPS (Table 6) - Non-U.S. GAAP Measure - unaudited
Slide 19: Reg G: Reconciliation of other charges and other adjustments
Reg G: Reconciliation of other charges and other adjustments (Table 7) - Non-U.S. GAAP Measure - unaudited
Slide 20: 4Q 2010 Other charges and other adjustments by segment
4Q 2010 Other charges and other adjustments by segment - Non-U.S. GAAP Measure - unaudited
Slide 21: FY 2010 Other charges and other adjustments by segment
FY 2010 Other charges and other adjustments by segment - Non-U.S. GAAP Measure - unaudited
Slide 22: Reg G: Equity affiliate preliminary results - Total
Reg G: Equity affiliate preliminary results - Total (Table 8) - Non-U.S. GAAP Measure - unaudited
Slide 23: Reg G: Equity affiliate preliminary results and Celanese proportional share
Reg G: Equity affiliate preliminary results and Celanese proportional share (Table 8 continued) - Non-U.S. GAAP Measure - unaudited